The European Central Bank [ECB] raised its benchmark interest rate a quarter-point to 4.0%, as widely anticipated -- the highest it has been in nearly six years. More importantly, market participants await comments by ECB president Jean-Claude Trichet. Following the announcement the DAX was down 1.4%, the FTSE 100 -0.9% and the CAC 40 -0.6%, similar to their pre-announcement levels, as indices traded lower across Europe. Trichet is expected to signal further hikes are necessary, but there's wide debate as to how much higher. Many economists forecast another hike to 4.25% in 2007. MarketWatch reports Goldman Sachs analysts raised their ECB rate forecast a quarter-point to 4.5% for '07. They do not expect the Federal Reserve to lower rates this year, after previously expecting 0.75% of cuts. A growing number of analysts and fund managers say rising interest rates and thus bond yields are becoming more attractive to investors and competing against equities.